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How The Market Is Like CYNK (Which Was Just Halted)

Tyler Durden's picture




 

For all the drama and comedy surrounding the epic idiocy in which a bunch of "investors" took the price of non-existent company CYNK from essentially zero to a market cap of over $5 billion in under a week, most people missed the key message here: the stock is a harbinger of what is happening to the entire market. Because while those defending what is clear irrational exuberance, scratch that, irrational idiocy are quick to point out that CYNK's epic surge took place on less than 0.1% of its outstanding shares, these are the same people to say precisely the opposite about the S&P 500. "Ignore the collapsing volumes sending the stock market to all time high - it's perfectly normal" is an often repeated refrain by the permabullish crowd. Just not when it involves case studies in market insanity like CYNK apparently.

Perhaps ironically, it was the concurrent most recent crisis in Europe, that involving Portugal's cryptic Espirito Santo group, whose top-most HoldCo is largely shrouded in secrecy yet which somehow is not a deterrent to the sellside community to issue one after another "all is clear; don't pull your deposits please" note, that confirmed not only that nobody has any idea what the real situation of European banks is, but how the entire capital market has now become nothing more than one glorified CYNK penny-stock turning into a mid-cap.

Deutsche Bank's Jim Reid explains:

Whatever one feels about financials and the wider financial system, credit markets did arguably get a small glimpse of what things will be like when this cycle does actually end as the structurally impaired liquidity that exists in credit caused a small amount of panic yesterday morning before markets recovered in the European afternoon session. Liquidity is really poor in credit these days which doesn't matter when markets are in buy only mode as they have been for many quarters now, but it does matter on the days when you get a negative story.

In other words, just like the CEO of CYNK who promptly "made" a few billion in paper profits, it feels great to "make" money on virtually no volume. The problem arises when one tries to cash out of paper and into all too real profits.

And here is what happens when one does finally try to book profits: moments ago the OTC BB just announced that, finally, CYNK was finally halted.

 

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Fri, 07/11/2014 - 08:10 | 4946645 AlaricBalth
AlaricBalth's picture

Cynk sinks.

Fri, 07/11/2014 - 08:14 | 4946652 PartysOver
PartysOver's picture

Coming to a stock near you.

Fri, 07/11/2014 - 08:25 | 4946671 IridiumRebel
IridiumRebel's picture

Only after the criminals are well positioned.

Fri, 07/11/2014 - 08:35 | 4946689 power steering
power steering's picture

Guess that means I'll have to swing my GPRO shares to margin

Fri, 07/11/2014 - 09:01 | 4946736 camaro68ss
camaro68ss's picture

Once you're in you can never leave

Fri, 07/11/2014 - 09:25 | 4946789 dontgoforit
dontgoforit's picture

Welcome to the Hotel Cynkafornia.

Fri, 07/11/2014 - 21:49 | 4949067 Buck Johnson
Buck Johnson's picture

Exactly, also he is correct.  The problem came when it looked like or orders where put to sell and they couldn't have that.  Brothers and sisters, when this market implodes it will take the dollar with it and possibly the govt. also.

 

 

Fri, 07/11/2014 - 08:21 | 4946665 Oldwood
Oldwood's picture

I don't understand how this stock is different from any other. It is worth exactly what someone (or algo) is willing to pay. Other than that it has no value whatsoever. Fucking casino chips and every body is whining about profits. These "investors" care nothing about value beyond what they can sell it for in the next few moments.

I say again, the future is dead. There is no demand to own anything that might have value in five years. Even thirty year bonds value ten days from now is irrelevant as the buyer is likely going to be trading them in the next four hours. WE now have paper gold and silver, because it just takes too damn long to actually buy and sell physical gold. We don't want to own anything, we don't want to build anything, we just want a piece of the action, our cut, a commission, a fee.

The brave new world, the same as it ever was, just more...the fast buck.

Fri, 07/11/2014 - 08:30 | 4946676 DaddyO
DaddyO's picture

Bravo Sir!

As to when the curtain will be pushed back and the puppetmaster exposed to the masses remains to be seen.

The brave new world is really not so...brave!

DaddyO

Fri, 07/11/2014 - 08:34 | 4946687 Oldwood
Oldwood's picture

The only thing people hate more than thinking they are being cheated is being told there is no such thing as something for nothing.

Fri, 07/11/2014 - 08:38 | 4946698 power steering
power steering's picture

Cramer went long yesterday. BUY BUY BUY

Fri, 07/11/2014 - 09:46 | 4946845 auntiesocial
auntiesocial's picture

Duly Noted. I read somewhere if you did the exact opposite of all of Cramer's predictions you would be filthy rich... BOO-YAA! what a jackoff.

Fri, 07/11/2014 - 09:02 | 4946738 csmith
Fri, 07/11/2014 - 09:20 | 4946774 MrBoompi
MrBoompi's picture

Although I understand what you're saying, don't underestimate the oligarch's understanding of what real wealth is. At the end of the day, land and other real estate, water, air, and natural resources are what counts. Look at who owns these things. The markets? These are for insiders and suckers. The insiders just use their play money to bilk everyone else. It's great to be in the .1%.

Fri, 07/11/2014 - 11:30 | 4947178 Mercuryquicksilver
Mercuryquicksilver's picture

Is BTC and different than CYNK?

Fri, 07/11/2014 - 20:21 | 4948838 Zero guest
Zero guest's picture

"There is no demand to own anything that might have value in five years."

Well I can think of one... Her Majesty the Queen of England owns over 8 billion dollars worth of Canadian and American stock. She has about 750 to 1000 different positions in every nook and crany of the North American economy at any one time.

See for yourself:http://relationalstocks.com/instshow.php?op=port&id=3641

Remeber thats just Canadian and American holdings, I have no idea how much of the English and European economy she owns.

She was pretty upset after 2007-9. Ah, to be in the 1%. I guess she would be in the .0000000001%

 

 

 

 

Fri, 07/11/2014 - 08:34 | 4946688 headhunt
headhunt's picture

Cynk sunk.

Fri, 07/11/2014 - 09:18 | 4946768 rubiconsolutions
rubiconsolutions's picture

I said yesterday that this was going to end badly, that it was likely a pump-n-dump scheme and lots of bag holders would lose their gamblings, er, investments. Good morning bag holders! How's your day going?

Fri, 07/11/2014 - 18:50 | 4948603 PiratePiggy
PiratePiggy's picture

Cynics!

Fri, 07/11/2014 - 08:14 | 4946651 RiskyBidness
RiskyBidness's picture

CYNK is a little OUT of SYNC......

Fri, 07/11/2014 - 10:34 | 4946672 RaceToTheBottom
RaceToTheBottom's picture

Actually, I think the authors point was that CYNK was INSYNC with the crazy market, if we can still use the term market.  Now the market?  Totally out of Sync with reality.

Fri, 07/11/2014 - 08:17 | 4946653 Smegley Wanxalot
Smegley Wanxalot's picture

CYNK was halted for one reason only:  the deception was too obvious.

Wall Street knows the deception has to be somewhat concealed for the con to be effective.  Plus, by halting CYNK, they will now say "Look at this scam we uncovered!  We are looking out for you serfs!"

Fri, 07/11/2014 - 08:25 | 4946670 Oldwood
Oldwood's picture

Does anyone really care that the "Rolex" you just bought on the street is fake, if you think you can sell it to someone else for more?

Fri, 07/11/2014 - 09:10 | 4946747 Tall Tom
Tall Tom's picture

So the SEC is reading Zerohedge. They uncovered nothing.

 

But at least that is a start...

Fri, 07/11/2014 - 10:55 | 4947066 zanez
zanez's picture

So ZH runs pop-up ads on midget tranny porn sites?

Fri, 07/11/2014 - 09:49 | 4946852 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Never spook the school of fish by thrusting right in,
It makes the work of the other sharks that much harder,
and might get a bite taken out of your fin.

Fri, 07/11/2014 - 08:16 | 4946654 Dr. Engali
Dr. Engali's picture

Another ass raping of the muppets.

Fri, 07/11/2014 - 08:31 | 4946681 Oldwood
Oldwood's picture

And they thought it was love. Will they still get a call the morning after? Everybody loves the dumb blonde.

Fri, 07/11/2014 - 08:16 | 4946655 Catullus
Catullus's picture

After the past 7 years, I still can't tell you why Jeff Skilling is in jail. Enron actually in some parts of their business made money and had assets.  This is just ridiculous.

Fri, 07/11/2014 - 08:31 | 4946685 RaceToTheBottom
RaceToTheBottom's picture

That was probably a contributing factor.  

They were faced with the decision of putting a majority of CEOs in jail and they decided to change the entry criteria to, well, actually removing the criteria altogether.

Fri, 07/11/2014 - 08:37 | 4946694 Oldwood
Oldwood's picture

The theory of our criminal justice system is not justice but setting an example or creating the illusion of justice to pacify the population. True justice found is more of an accident or coincidence than deliberate action.

Fri, 07/11/2014 - 09:15 | 4946755 medium giraffe
medium giraffe's picture

Illusion of justice, illusion of security, illusion of choice, illusion of freedom. 

'You've been living in a dream world, Neo.'

Fri, 07/11/2014 - 09:20 | 4946772 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Soon the hipster rainbow facist version of this guy is going to be running wall street.

 

https://www.youtube.com/watch?v=lIxWPNVqwWo

 

Fri, 07/11/2014 - 08:16 | 4946656 orangegeek
orangegeek's picture

organized crime buys paper from the company with their "cash"

 

they take the paper to their brokerage and surface the shares

 

they trade the paper, transfer to a bank account and PRESTO!!!!  you now have surfaced crime proceeds

 

so good of the OTC BB to step in a few weeks later - NASD?  SEC?  right, back to sleep

 

 

Fri, 07/11/2014 - 08:20 | 4946662 Unknown Poster
Unknown Poster's picture

It's probably not a good one to BTFD on.

Fri, 07/11/2014 - 08:20 | 4946663 ZippyBananaPants
ZippyBananaPants's picture

How am I going to sell my shares now?

Fri, 07/11/2014 - 08:23 | 4946667 I Am Not a Copp...
I Am Not a Copper Top's picture

Crap I just got in yesterday looking for a ten-bagger.  How am I going to get out now?

Fri, 07/11/2014 - 08:41 | 4946701 Oldwood
Oldwood's picture

Try not to worry so much about your loss. You are an important part of the "system", like that of the water buffalo on the African plains can supply a pride of lions important nutrition for a week.

The "market" thanks you for your sacrifice.

Fri, 07/11/2014 - 08:25 | 4946669 buzzsaw99
buzzsaw99's picture

was the ceo in on the bear trap scheme?

that's what shorts don't understand about the broader stock and bond markets. they are ALL CORNERED. if you want to lose money then by all means short this dog and pony show but YOU ARE ALL ALONE, nobody else is selling. Nobody loves you. Boo hoo.

Fri, 07/11/2014 - 08:30 | 4946680 WTFUD
WTFUD's picture

The Section 419 Naija scam is still alive and well decades after burning many a fool and now more subtly refined by the banking syndicate to pull in even a greater portion of fuckwits.

Fri, 07/11/2014 - 08:31 | 4946686 mastersnark
mastersnark's picture

Probably halted due to imminent release of good news. I bet its website is finally going live...

Fri, 07/11/2014 - 14:13 | 4947766 Emergency Ward
Emergency Ward's picture

"CYNK Technologies announces reports mentioning CYNK found on many major news outlets."

Fri, 07/11/2014 - 08:36 | 4946690 AdvancingTime
AdvancingTime's picture

This is more proof on how this is all a house of cards. When the market shuts the game is over!

For a long time I have been trying to develop a scenario for a market "super crash" and a reasonable map that would arrive at such a situation. Below is an article looking at how it could happen sooner rather than later.

http://brucewilds.blogspot.com/2013/01/flash-crash-on-steroids.html

 

Fri, 07/11/2014 - 08:37 | 4946695 Racer
Racer's picture

Halted because someone tried to sell 1 share?

Fri, 07/11/2014 - 08:45 | 4946704 youngman
youngman's picture

1 share..are HFTs involved now...oh my..to da moon

Fri, 07/11/2014 - 08:38 | 4946696 esum
esum's picture

what we see is a challange to the fed..... go ahead and raise interest rates...... we dare you to think of the 401's and pension funds and the social consequences.... 

and the white house is saying.... pull the rug AFTER THE MIDTERMS... and make it hurt.... i'll fix it with my pen and phone...

and the "investment" pimps are luring the retail client   YOU CANT LOOSE and MISSING THE OPPORTUNITY OF A LIFETIME... IT'S NOT TOO LATE .... YOURE GETTING ZERO N THE BANK.... 

I just bought this for my mother and that for my grandmother and I WANT YOU TO GET SOME TOO

just like AIDS client ZERO.... 

 

 

Fri, 07/11/2014 - 08:38 | 4946697 rsnoble
rsnoble's picture

Maybe some of us should create our own shell company and IPO it. 

It's all fucking crazy.  I now view stocks as individual poker tables.  They've always been that way but now it's extreme.  More like a big game of jenga with more dire consequences.

Fri, 07/11/2014 - 08:40 | 4946699 RiverRoad
RiverRoad's picture

Musical Chairs folks, musical chairs and er....there's only one chair.

Fri, 07/11/2014 - 11:02 | 4947088 aardvarkk
aardvarkk's picture

And there's a giant fat guy smoking a cigar that's been sitting in it since before the music began.

Fri, 07/11/2014 - 08:40 | 4946700 WTFUD
WTFUD's picture

Stocks are the perishables you hold in your larder or cellar. Of course wouldn't argue if folks included lead in their portfolio.

Fri, 07/11/2014 - 08:45 | 4946705 Navymugsy
Navymugsy's picture

Speaking of Con jobs, so far on Bloomberg this morning I've been told to come to Detroit to work in tech because everything is now great and a congresscritter from Texas has told me that in the great American tradition we need to feed, clothe, shelter and take care of the "refugees" (yes he said "refugees") from South America because that's what we do as Americans.

When did Bloomberg go over to the dark side? Is there any responsible financial journalism on TV?????????

Fri, 07/11/2014 - 08:48 | 4946708 Frostfan1
Frostfan1's picture

Dude, if you didn't figure out what Bloomberg was about when trying to control the size of our soda cups, you never will.

Fri, 07/11/2014 - 08:51 | 4946712 DaddyO
DaddyO's picture

The short answer...No, not for a very long time.

DaddyO

Fri, 07/11/2014 - 09:08 | 4946728 buzzsaw99
buzzsaw99's picture

When did Bloomberg go over to the dark side?

You're kidding, right?

Fri, 07/11/2014 - 09:18 | 4946764 alien-IQ
alien-IQ's picture

"Give me your tired, your poor,
Your huddled masses, yearning to breath free,
The wretched refuse of your teeming shore,
Send these, the homeless, tempest tost to me,
I lift my lamp beside the golden door. "

I guess it's time to add some fine print and perhaps an expiration date to this relic of a comment inscribed on the statue of liberty?

Fri, 07/11/2014 - 10:25 | 4946963 gcjohns1971
gcjohns1971's picture

It was changed in the 1930s thusly:

"Give me your tired, your poor,

Your huddled masses, yearning for free handouts,

The wretched criminals of your teeming jailhouses,

Send these, the homeless, drug addled to me,

I lift my lamp beside the tax-funded oven door.

Fri, 07/11/2014 - 08:46 | 4946707 Frostfan1
Frostfan1's picture

I don't see what the big deal is.  If a bunch of jerkoffs want to play a combination of Russian Roulette and 3-card monty, let them.  Only a complete moron would join the game and they deserves the losses they get for doing so.

Fri, 07/11/2014 - 08:52 | 4946718 DaddyO
DaddyO's picture

Intellectually, you're correct.

Morally, muppet slaughter is a reprehensible thing.

DaddyO

Fri, 07/11/2014 - 09:50 | 4946855 SillyWabbits
SillyWabbits's picture

The problem is that the transaction is based upon trust.  Expressed in terms of authenticity and valued by experts who claim by doing “Gods Work” they are to be trusted and have an expertise which will be utilized to your benefit for a small commission on your money, that you trust them with.

 

They issue statements constantly which “prove” their bon-a-fide.

An example as to how corrupt this is, when you buy bread, there is no guarantee that the bread is non-poisonous.

 You believe that if it was, it would be OK, because only a fool trusts people.

Shearing Sheep is a policy only for those without humanity.

It is not a business model, it is criminal behavior no matter how justified.

Fri, 07/11/2014 - 08:51 | 4946713 SillyWabbits
SillyWabbits's picture

 

Stocks are a method of counterfeiting.

Stocks are used as cash in very large transactions.

Stocks are used as a method to lower payroll costs.

Stocks are used as a method of excessive payment to executives.

A stock has the same value as a fait currency for exactly the same reason.

The reason being that someone by some algorithm equates a piece of paper as having a value by some division or multiplication of some mathematical expression.

The difference is that stocks can be manipulated by anyone with a twitter account, for instance, whereas a fait currency is manipulated only by an anointed few.

Both have a value equal to the amount of baloney people are willing to swallow, expressed by people with no skin in the game.

If you believe; you will be deceived.

That is why fundamentals have been reduced to talking points.

The beauty of stock scams is that, if you make money trading stock in a scam, you get to keep it, while a financial scam is susceptible to claw-back.

Examples: dot.coms vs Ponzi schemes.

A catchy slogan is worth more than an axiom, but not as much as well-timed tweet, such as I may eat lunch!     

Fri, 07/11/2014 - 08:55 | 4946717 Agent P
Agent P's picture

CNN's website has a story on it this morning.  The headline: "Stock up 25,000%. No one knows why."

It's out in the mainstream idiocracy now....my guess is they halted it because of a flurry of new buy orders by all those "investors" out there looking to chase lottery-style returns.

http://money.cnn.com/2014/07/10/investing/cynk-stock-surge/index.html?hp...

Fri, 07/11/2014 - 09:09 | 4946748 Bryan
Bryan's picture

"No one knows why"  hahahah.... Duh, the stock was manipulated by criminal behavior, like the rest of the stock market has been.  It was just more obvious with this one.  I'm sure the trading halt is a slap to the people who did it to tell them to be less conspicuous next time.  Amateurs, sheesh.

Fri, 07/11/2014 - 09:09 | 4946749 stateside
stateside's picture

CNBS was talking about it yesterday afternoon after hearing it first from ZH - their source for most of the important news of the trading day.

 

stateside

Fri, 07/11/2014 - 08:56 | 4946730 NMFP
NMFP's picture

"Don't be so CYNiKal, just HOPE for the best" -Obama 2014

Fri, 07/11/2014 - 09:05 | 4946739 medium giraffe
medium giraffe's picture

You're full of shit Tyler.  This is just normal price discovery in a healthy free market.

Fri, 07/11/2014 - 09:07 | 4946745 SmallerGovNow2
SmallerGovNow2's picture

What is a "U3" halt code anyone?

Fri, 07/11/2014 - 09:31 | 4946812 Isotope
Isotope's picture

Trading Halt - Extraordinary Event Halt
Trading is halted because FINRA has determined that an extraordinary event has occurred or is ongoing that has had a material effect on the market for the OTC Equity Security or the security underlying an OTC ADR or has caused or has the potential to cause major disruption to the marketplace or significant uncertainty in the settlement and clearance process.

Fri, 07/11/2014 - 14:01 | 4947726 Emergency Ward
Emergency Ward's picture

Somebody broke away from watching the World Cup games to notice something not quite right in the Wall Street games.

Fri, 07/11/2014 - 09:11 | 4946753 Max Cynical
Max Cynical's picture

Someone was buying and selling shares over the last month...so where did all the money go?

Fri, 07/11/2014 - 14:02 | 4947719 Emergency Ward
Emergency Ward's picture

(I wonder if Hillary was short on this one.)

Fri, 07/11/2014 - 09:20 | 4946775 ak_khanna
ak_khanna's picture

Derivative positions determine price movements and the media and so called financial experts scramble to assign reasons linking the moves with events in the real economy.

The markets continue to rise till all short positions in the market are covered and the majority of traders move to the long side. Once this is done the market falls till all long positions are closed and short positions undertaken. Then rinse and repeat. The price mechanism has little to do with the actual demand, supply, fundamentals or state of the economy.

www.marketoracle.co.uk/Article40231.html

Fri, 07/11/2014 - 09:36 | 4946803 Pee Wee
Pee Wee's picture

Picking winners and losers is just another day in Fascist paradise.

Current market participation is a fools lesson - particularly when there is anything but a "market."  

 ZH tards, and (surprisingly) the rest of the world got to see this in plain sight on CYNK, but it may as well be any equity as they are all hammered any direction but legitimate.  CYNK shows that price discovery is a relic of the past.  Your canary is dead in the mine, but because the music still plays (and bailouts are already in the pipeline) it's ignored.

The truth even Tyler Durden candidly overlooks is that smart money is/has been completely out of paper and into hard assets (going on almost 8 years strong).  Fools trade with themselves and call it capitalism - it is anything but.  Then again, that is why they are fools that know precisely nothing but each other.

Fri, 07/11/2014 - 09:37 | 4946813 SillyWabbits
SillyWabbits's picture

 

I removed due to duplicate post.  My network went down and I double posted by accident.  Sorry!     

Fri, 07/11/2014 - 14:04 | 4947735 Emergency Ward
Emergency Ward's picture

ZH will probably ban you and your spawn for a generation.

Fri, 07/11/2014 - 09:43 | 4946838 PoliticalRefuge...
PoliticalRefugeefromCalif.'s picture

Maybe a good day to promote the MYRA program- (with stronger protective regulation the Federal Gvt. provides this kind of raw capitalistic opportunism couldn't happen)

Fri, 07/11/2014 - 09:56 | 4946862 Mi Naem
Mi Naem's picture

I don't know WHAT you guys are talking about.  Everything in the markets is just fine. 

See?:

3 reasons to ignore all these 'correction' calls

Stocks set record highs last week and just days later after some rough waters here come the Pundits of Doom. Here's why you should ignore them.

Although, the charts of various indexes shown on the same page all point straight down into the red, but I'm sure everything's fine. 

Fri, 07/11/2014 - 10:51 | 4947053 pupdog1
pupdog1's picture

Maybe the porn-surfing whores at the SEC could explain to the American people how this non-outfit met listing requirements in the first place.

Fri, 07/11/2014 - 13:17 | 4947506 Godisanhftbot
Godisanhftbot's picture

 you get my cynk shares from my cold dead hands,

 

 worth at least 10 billion. wait and see,

 

 im also bullish on bitcoin using the very same metrics

 

 

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